Question

One of the major advantages of specialization is that:
A. countries are less likely to experience a division of labor.
B. countries become more economically self-sufficient.
C. countries benefit from increased voluntary exchange.
D. countries produce a much wider range of different goods.
SUBMIT

Answer 1

The correct answer is C) countries benefit from increased voluntary exchange.

One of the major advantages of specialization is that countries benefit from increased voluntary exchange.

When we are talking about specialization in the industries of a country, we find some advantages. Among these advantages are:

Industries produce increased levels of goods to trade.

Workers specialized in the production process of one good and this made them more effective and productive.

These better levels of productivity make the industry to be more efficient with its costs

Industries offer more training for their workers to strengthen their specialization.

One of the benefits for workers of this specialization is that they can negotiate better wages